EV firms stare at disruption amid FAME-III uncertainty

Automakers are lining up affordable vehicles, slashing prices to lure buyers as sales stagnate

- Alisha Sachdev

The government has yet to take a call on whether to extend the FAME-II (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) incentives beyond 31 March, two officials privy to the discussions said, even as electric vehicle makers seek certainty on continuation of the scheme that aims to promote clean mobility in the country.

The officials cited a global trend where electric vehicle subsidies have been tapering off in major economies, adding that the same shall be done in India. "As of today, there is no FAME-II beyond March 31 and the government is yet to take a view on whether there should be a FAME-III", one of the officials cited above told Mint. "But what is certain is subsidies will come down across the board for every vehicle segment," the second official added. An inter-ministerial committee, with the heavy industries ministry as the nodal agency, is currently evaluating the proposed incentive scheme that will likely replace or extend FAME-II.